One Of Consumer Reports' Most Reliable Cars Has One Of The Best Depreciation Rates
Whether it's a reminder of the satisfaction of being able to afford a new car or the scent itself, everyone loves that new-car smell. However, once that aroma wears off and you realize that your new car's value depreciates quickly after you buy it, you might wish you'd sacrificed the olfactory satisfaction for a cheaper, used car. In fact, Kelley Blue Book estimates that an average new vehicle depreciates by as much as 30% in the first two years after you buy it.
If you're interested in buying a car that has a history of holding its value better than others, several Toyota models have good resale values, according to iSeeCars' list of the top 25 cars with the lowest depreciation percentage over a five-year period. If you want to pair resale value and reliability together, Consumer Reports lists the Toyota Corolla as one of the 10 most predictably reliable vehicles among 2026 models.
The Corolla sedan is one of the most popular vehicle designs with nearly 233,000 vehicles sold in the United States during 2024. Through the first 10 months of 2025, the Corolla only trailed behind the Toyota RAV4, beating the Tesla Model Y to become the second most popular model sold worldwide. One reason the Corolla is popular is because of its affordability; the 2026 sedan model offers a starting MSRP of $22,725. And when you want to avoid buying vehicles that will drain your retirement savings, a good place to start is focusing on models that hold their value and cost less to fix, maintain, and operate like the Corolla.
Why Consumer Reports says the Corolla is a reliable vehicle
In its list of the 10 most reliable vehicle models going into the 2026 model year, Consumer Reports listed the Corolla sedan in the fifth position. Several other Toyota models also made the predicted reliability list, including the Corolla Cross SUV, Crown sedan, Tacoma pickup, Highlander SUV, and Grand Highlander Hybrid SUV, showcasing Toyota's overall expected reliability as a brand.
Specifically related to the Corolla sedan, Consumer Reports gives it a "CR Recommended" designation. The Corolla sedan had only an average predicted reliability rating in 2023's Consumer Reports survey, but it has achieved well above average ratings in 2024 and 2025. It has the highest possible scores in the categories of powertrain, suspension and steering, brakes, climate system, and build quality. The only areas where the Corolla sedan doesn't have the highest possible score relate to noisy operation and in-car electronics.
To put together its reliability survey, Consumer Reports relies on information submitted by its members. For the 2025 survey, CR received information for about 380,000 vehicles across 25-plus model years. CR asks members about any problems they have had with their vehicles in 20 particular areas during the past 12 months, allowing the independent non-profit organization to create its vehicle reliability scores for each model. To generate its ranking that placed the 2026 Corolla sedan in the fourth spot on the predicted reliability list, Consumer Reports used data from the 2023 through 2025 Corolla model years.
How the Corolla sedan stacks up in avoiding depreciation
Every vehicle undergoes depreciation, dropping in worth by a particular percentage as you own and drive it. Wear and tear, accidents, damage, and the popularity of the model among used car buyers all affect the expected depreciation rate. Selecting a motor vehicle model that holds its value is beneficial if you ever decide to sell it or trade it in because you'll receive the greatest financial benefit from a model that has minimal depreciation. Additionally, if you have an accident that totals your vehicle, an insurer will probably only pay you the depreciated value of the car.
The iSeeCars estimate ranks the Toyota Corolla sedan 14th on its list of the models with the least depreciation. Its average five-year depreciation rate is 31.4%, according to iSeeCars. The overall average depreciation for motor vehicles over a five-year period as of 2025 is 45.6%. A CarEdge survey offers similar numbers, estimating the Corolla will have a 33% depreciation rate after five years of ownership. In CarEdge's rankings of the models that hold their value the best, the Corolla sedan ranks 28th on the list of 185 models.
The iSeeCars survey also listed the colors of Corolla sedans that held their values the best. Beige, brown, and gray Corolla were worth an extra $500 or more compared to the average used Corolla. Red Corollas had a lower-than-average resale value by almost $500, according to iSeeCars.